Page:United States Statutes at Large Volume 98 Part 1.djvu/673

 PUBLIC LAW 98-369—JULY 18, 1984

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"(iii) the excess of any dividends includible in gross income with respect to such property for the taxable year over the amount of any deduction allowable with respect to such dividends under section 243, 244, or 245. For purposes of subparagraph (A), the term 'interest' includes any amount paid or incurred in connection with personal property used in a short sale." (8) Subsection (g) of section 263 (relating to certain interest and carrying charges in the case of straddles) is amended by adding at the end thereof the following new paragraph:

98 STAT. 625

26 USC 263.

"(4) APPLICATION WITH OTHER PROVISIONS.— "(A) SUBSECTION (C).—In the case of any short sale, this

subsection shall be applied after subsection (h). "(B) SECTION 1277 OR 1282.—In the case of any obligation to which section 1277 or 1282 applies, this subsection shall be applied after section 1277 or 1282." (9) Section 1234A (relating to gains or losses from certain terminations) is amended by adding at the end thereof the following new sentence: "The preceding sentence shall not apply to the retirement of any debt instrument (whether or not through a trust or other participation arrangement)." (f) EFFECTIVE DATES.—

(1) IN GENERAL.—Except as otherwise provided in this subsection or subsection (g), the amendments made by this section shall apply to positions established after the date of the enactment of this Act, in taxable years ending after such date.

Ante, pp. 545, 549. 26 USC 1234A.

26 USC 1256 note.

(2) SPECIAL RULE FOR OPTIONS ON REGULATED FUTURES CON-

TRACTS.—In the case of any option with respect to a regulated futures contract (within the meaning of section 1256 of the Internal Revenue Code of 1954), the amendments made by this section shall apply to positions established after October 31, 1983, in taxable years ending after such date. (3) SPECIAL RULE FOR SELF-EMPLOYMENT TAX.—Except as provided in subsection (g)(2), the amendments made by subsection (c) shall apply to taxable years beginning after the date of the enactment of this Act. (4)

GAINS

OR LOSSES FROM

CERTAIN

TERMINATIONS.—The

amendment made by subsection (d)(9) shall apply as if included in the amendment made by section 505(a) of the Economic Recovery Tax Act of 1981, as amended by section 105(e) of the 20 USC 237 note, 238 Technical Corrections Act of 1982. (g) ELECTIONS WITH RESPECT TO PROPERTY HELD ON OR BEFORE THE DATE OF THE ENACTMENT OF THIS ACT.—At the election of the

taxpayer— (1) the amendments made by this section shall apply to all section 1256 contracts held by the taxpayer on the date of the enactment of this Act, effective for periods after such date in taxable years ending after such date, or (2) in lieu of an election under paragraph (1), the amendments made by this section shall apply to all section 1256 contracts held by the taxpayer at any time during the taxable year of the taxpayer which includes the date of the enactment of this Act. (h) ELECTIONS FOR INSTALLMENT PAYMENT OF TAX ATTRIBUTABLE TO STOCK OPTIONS.—

(1) IN GENERAL.—If the taxpayer makes an election under subsection (g)(2) and under this subsection—

26 USC 1234A. 26 USC 1256 note.

26 USC 1256 note.

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